The December 2015 issue of Review of Social Economy is a special issue on the theme "Ethics, Global Finance, and the Great Recession," edited by Philip Arestis, Aurelie Charles, and Giuseppe Fontana. (All three co-editors are actively involved with the ASE: Fontana is the current president, Charles is an international director, and Arestis is a trustee.)
The global events of 2007–2008 have brought financialisation, namely the increasing role of financial motives in the operation of modern economies and societies, to the attention of millions of people, who are now questioning the neoclassical foundations of economic theory and practice. However, many fundamental questions are still unanswered. Will the actors, institutions, and policies of financial markets that led to the financial crisis and the related Global Crisis be tamed once and for all with new regulations? Would this require a paradigm change in the economics discipline and policy-making away from neoclassical models and assumptions? Furthermore, what is the proper function of financial institutions in the achievement of a fair society? What role should ethics play in shaping the behaviour of these institutions? Could the financial sector be restructured to enhance social and economic goals such that if a financial crisis occurs, as in 2007, its negative effects will not fall disproportionally on the most vulnerable parts of the society? These are complex and challenging questions. The papers in this special issue are an attempt to start answering these fundamental questions, and provide hints for policy-making to address future crises and their impact on the society at large.
The articles in this special issue are:
George F. DeMartino, "Harming Irreparably: On Neoliberalism, Kaldor-Hicks, and the Paretian Guarantee"
Cynthia Bansak & Martha A. Starr, "Distributional Costs of Housing-Price Bubbles: Who Pays the Price when Bubbles Deflate?"
Philip Arestis, Aurelie Charles & Giuseppe Fontana, "Power, Intergroup Conflicts and Social Stratification in the United States: What Has the Global Crisis Taught Us?" FREE ACCESS (as of 1-25-16)